Cash balance renaissance

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By Richard Bottelli Jr. , Zorast Wadia, Zorast Wadia | 20 September 2010
A cash balance plan is a hybrid retirement vehicle that can prove to be more cost-effective for employers and more secure for employees. The plans share the characteristics of defined benefit and defined contribution plans. Under the structure described in this article, the cash balance plan provides a safe and conservative benefit that never loses principal. And plan participants can then carry out their retirement investment strategy any way they choose in their defined contribution, IRA, or personal accounts.